# FORGE (FRG) — Token Tokenomics & Design Specification **SnapKitty Collective LLC | Bel Esprit D'Accord Trust** **Version 1.0 — 2026-05-21** **Authored by: CIPHER (Cryptographic Agent), co-architecting with NOVA** --- > REGULATORY DISCLAIMER > FORGE (FRG) is a utility token designed for internal mesh participation within the > SnapKitty SACM ecosystem. It is NOT a security, investment contract, share, bond, > or any financial instrument regulated under the Securities Act of 1933, the Securities > Exchange Act of 1934, or applicable state or foreign securities laws. No public sale > has occurred or is being offered by this document. All token distributions, public > offerings, or exchange listings are PENDING LEGAL REVIEW by Jessica Lee Westerhoff, > CPA, and qualified securities counsel before any execution. This document is an > internal design specification only. > > SnapKitty Collective LLC — EIN 41-5105572 > Bel Esprit D'Accord Trust — EIN 41-6630640 --- ## 1. Token Identity | Field | Value | |--------------|---------------------------------------------------------| | Name | MAGMA | | Symbol | MGM | | Decimals | 18 | | Hard Cap | 21,000,000 MGM (one billion) | | Standard | ERC-20 (OpenZeppelin 5.x) | | Chain | Base L2 (Coinbase Layer 2, OP Stack) | | Contract | `contracts/MAGMA.sol` | --- ## 2. Chain Selection: Base L2 **Recommendation: Base (Coinbase L2)** **Rationale:** | Factor | Base | Solana | Polygon PoS | |---------------------|-------------------------------|------------------------------|---------------------------| | EVM compatibility | Full — direct OpenZeppelin | No — Rust/Anchor required | Full | | Gas costs | ~$0.001–0.01/tx (OP Stack) | ~$0.00025/tx | ~$0.001–0.005/tx | | Institutional trust | Coinbase-backed, regulated | Permissionless, VC-heavy | Polygon Labs | | Compliance posture | Coinbase KYC/AML ecosystem | Complex for US compliance | Moderate | | Ecosystem liquidity | Coinbase wallet, USDC native | Deep but fragmented | Good | | WORM bridge | Ethereum L1 finality via OP | Separate bridge risk | Checkpoint validators | | Agent tooling | Ethers.js / Viem / Foundry | Anchor — separate dev stack | Same as Base | Base is chosen because: 1. The SACM stack is TypeScript/Node — EVM tooling (Viem, Hardhat, Ethers) integrates directly. 2. Coinbase's regulatory standing reduces compliance friction for a CPA-led entity. 3. USDC is native on Base — treasury operations are straightforward. 4. OP Stack gives L1 Ethereum security with L2 throughput for agent-volume transactions. 5. Full OpenZeppelin 5.x compatibility with no chain-specific rewrites. --- ## 3. Total Supply & Distribution **Hard Cap: 21,000,000 MGM** | Allocation | Percentage | MGM Amount | Purpose | |--------------------|------------|-----------------|--------------------------------------------------------------| | Mesh Agent Rewards | 35% | 7,350,000 | Earned by SACM agents for WORM-verified work | | Treasury | 25% | 5,250,000 | Operations, grants, liquidity provisioning, future programs | | Team & Founders | 15% | 3,150,000 | Jessica Westerhoff & Ahmad — 50/50 per ownership structure | | Ecosystem Fund | 12% | 2,520,000 | Partnerships, integrations, developer grants | | Community Rewards | 8% | 1,680,000 | SEALFORGE users, early adopters, referral programs | | Reserve (Burn) | 5% | 1,050,000 | Deflationary reserve — burned on milestones | **Total: 100% / 21,000,000 MGM** No tokens are minted at contract deployment. All distributions are executed by the Treasury multisig via WORM-gated `wormMint()` calls. This ensures every token in existence corresponds to a sealed, auditable WORM ledger entry. --- ## 4. Vesting Schedules ### Team & Founders (3,150,000 MGM — 15%) | Tranche | Amount | Release Condition | |------------|---------------|---------------------------------------------| | Cliff | 0 | No tokens for first 12 months post-launch | | Month 12 | 15,000,000 | 10% unlocks at 12-month cliff | | Month 13–36| 5,625,000/mo | Monthly linear vest over 24 months | | Total vest | 24 months post-cliff (36 months total) | Both founders (Jessica Westerhoff, Ahmad) split 50/50 in accordance with the Bel Esprit D'Accord Trust ownership structure. ### Treasury (5,250,000 MGM — 25%) - Controlled by Gnosis Safe multisig (3-of-5 signers minimum) - No vesting cliff — immediately usable for operational minting - Governed by quarterly spending proposals voted on by MGM holders ### Ecosystem Fund (2,520,000 MGM — 12%) - 24-month linear release against approved grant milestones - Each grant release requires a WORM-sealed approval entry ### Community Rewards (1,680,000 MGM — 8%) - Distributed on-demand as SEALFORGE users and agents qualify - No vesting — liquid on receipt (incentive design) ### Mesh Agent Rewards (7,350,000 MGM — 35%) - Distributed continuously as agents generate verified WORM entries - Rate governed by the Emission Schedule (see Section 6) --- ## 5. Utility: What MAGMA Buys MAGMA is the exclusive medium of exchange within the SnapKitty ecosystem. ### SEALFORGE Access | Tier | USD Price | MGM Burn (Equivalent) | What Burns | |-----------|-----------|-------------------------|-----------------------------| | Basic | $49/mo | 490 MGM/mo | Burned on subscription renewal | | Pro | $249/mo | 2,490 MGM/mo | Burned on subscription renewal | | Architect | $2,000+ | 20,000+ MGM | Burned on tier activation | MGM burn rates are pegged to USD value at time of transaction using a Chainlink price feed (if/when MGM is listed) or treasury-set rate pre-listing. ### Mesh Access - Agent compute slot reservation: 100 MGM/slot/epoch - Priority queue for task routing: 500 MGM/boost - API rate-limit increases: 50 MGM/tier upgrade ### Governance - 1 MGM = 1 governance vote - Voting cap: 1% of MAX_SUPPLY (10,000,000 MGM) per address - Proposals require 1,000,000 MGM staked to submit - Quorum: 5% of circulating supply ### Premium Features - WORM ledger export (archival): 200 MGM/export - Custom HMAC signing keys: 1,000 MGM/key - Agent persona customization: 250–5,000 MGM - White-label SEALFORGE instances: 50,000 MGM --- ## 6. Earning Model ### Agents (SACM Mesh) SACM agents earn MAGMA automatically when their actions are sealed into the WORM chain. | Work Type | MGM Per Event | |------------------------------|---------------| | Task completion (standard) | 10 MGM | | Knowledge ingestion (FSM) | 25 MGM | | Cross-agent coordination | 50 MGM | | Anomaly detection / alert | 100 MGM | | Governance vote participation| 5 MGM | The Treasury multisig submits `wormMint()` calls daily in batch, using the HMAC-SHA256 hash of each WORM entry as the nonce. No entry can be double-spent. ### Human Users | Activity | MGM Earned | |---------------------------------|----------------| | SEALFORGE onboarding | 100 MGM | | First seal creation | 50 MGM | | Referral (per converted user) | 200 MGM | | Bug report (verified) | 500–5,000 MGM | | Governance proposal (passed) | 1,000 MGM | --- ## 7. Deflationary Mechanics MAGMA is designed to be deflationary over time: 1. **SEALFORGE Burns** — every subscription renewal and tier upgrade burns MGM permanently. 2. **Reserve Burns** — 1,050,000 MGM reserve is burned against milestones ($500k ARR, $1M ARR, $3M ARR). 3. **Governance Burns** — failed proposals burn 50% of the staked submission bond. 4. **Hard Cap** — once 21,000,000 MGM are minted, no further minting is possible. At $3M ARR (the revenue target), estimated annual burn from SEALFORGE subscriptions: - Assume 5,000 Basic, 500 Pro, 50 Architect users - Annual burn: (5,000 × 5,880) + (500 × 29,880) + (50 × 240,000) - = 29,400,000 + 14,940,000 + 12,000,000 = **~56,340,000 MGM/year** - At that emission rate, circulating supply contracts meaningfully within 3 years. --- ## 8. Governance Architecture MAGMA governance uses a two-phase model: **Phase 1 (Pre-DAO, current):** - Architect multisig controls all upgrades and emergency functions - MGM holders can submit non-binding sentiment votes - Treasury operates under CPA oversight (Jessica Lee Westerhoff) **Phase 2 (Post-$1M ARR):** - On-chain Governor.sol module deployed - `governanceWeight()` integrated as vote oracle - 1% cap enforced per address - Timelock: 48-hour delay on all passed proposals --- ## 9. Security Architecture | Layer | Mechanism | |---------------------|---------------------------------------------------| | WORM nonce | `wormEntryMinted[bytes32]` mapping prevents replay | | Role separation | ARCHITECT / MINTER / BURNER — no single key rules | | Emergency pause | `emergencyPause(reason)` — Architect only | | Hard cap | `require(totalSupply() + amount <= MAX_SUPPLY)` | | Reentrancy guard | OpenZeppelin `ReentrancyGuard` on mint/burn | | Multisig | Gnosis Safe 3-of-5 for Treasury/Architect roles | | Governance cap | `governanceWeight()` caps at 1% MAX_SUPPLY | --- ## 10. Deployment Checklist - [ ] Deploy Gnosis Safe 3-of-5 multisig for Treasury - [ ] Deploy Gnosis Safe 3-of-5 multisig for Architect - [ ] Deploy `MAGMA.sol` on Base Sepolia testnet - [ ] Verify contract on Basescan - [ ] Run WORM genesis mint (team/ecosystem allocations) - [ ] Grant BURNER_ROLE to SEALFORGE upgrade contract address - [ ] Legal review completed by Jessica Lee Westerhoff, CPA - [ ] Qualified securities counsel sign-off before any public distribution - [ ] Audit by external Solidity auditor (Certik, Trail of Bits, or equivalent) - [ ] Deploy to Base mainnet --- *CIPHER (Cryptographic Agent) — co-architecting with NOVA* *SnapKitty SACM Mesh | 2026-05-21* *PENDING LEGAL REVIEW — NOT FOR PUBLIC DISTRIBUTION*